2012-12-22
2012-12-30
x newtown

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years in the senate. harry reid has not been able to produce a budget and the budget president obama recommended last year or two years ago when to the democratic senate and went down in flames 99-1. his own party can't agree on a simple budget. >> what is reed's role? >> i think reid's role is to protect the president, which i think is foolish. when boehner was trying to get the votes for the compromise bill last week, and we saw that strange business where harry reid was coming out and we knew president obama said he wasn't going to support it, then harry reid saying we're not going to take this bill up. it wasn't even going to get president obama. the only thing i can see is that harry reid is trying to protect the president, which if you look through history, parties protecting their president in a second term usually pay a very heavy price in second admit terms. i don't think -- midterms. i don't think this is be different harry reid protects him from hard decisions. >> got leave it there. take care. >> chris wallace will be here for more on the fiscal cliff and we'll hear from

, basically flipping the lights back on and harry reid taking to the floor to eviscerate speaker boehner. >> the sad part is you often seen the floor opened that way. mitch mcconnell being later today. i'm sure we'll hear something later. to hear it two days after christmas and a matter of days before we go through the fiscal cliff, obviously not encouraging. harry reid says time is running hout. he doesn't know if they could go through the legislative hurdles. if they have the votes around here, they can legislate the sky is green and the grass is blue. that's not an issue. what harry reid is really saying is mitch mcconnell, get on board, don't try to filibuster. of course they're talking about a bill that had raise capital on couples making more than $250,000 a year, and do a few other nuts and bolts that are deemed the bare minimum that the president wants to see done before we hit january 1st. i've got to tell you, though, getting back to the votes, the votes simply aren't there in the house of representatives for that. they're likely not even there in the senate, so we're back at s

the president what s your plan, senator harry reid are you going pass a budget. i really do believe that the president and the democrats really have no intention and as a result have no plan to limit the rate of growth in government and no plan to save social security and medicare and we need to start putting political pressure on them to show the american people a plan. the house passed two budgets since i have been here. they both include some proposal to save medicare. the democrats have not done that and this is really where we start turning the messaging on them and start demanding. i think the american people have a right to know, president obama are you going so solve the 92% or 93% of the deficit. what is it that you talked about on the campaign trail? >> sean: how can you help me he out or help the american people out. they don't know what taxes will be in a couple of days and now we are counting the hours. how is it possible the u.s. senate does not pass a spending bill which constitutionally they are supposed to pass in over three years, over 13 hyundais and then elect th

assume harry reid is here and their staffs are going back and forth. i spoke to one aide who said don't expect for any details to leak tonight. they'll be closed-lipped about this because the idea if anything does leak out it gives more of an opportunity for folks on either party to kill a deal if they don't like what they hear. some sort of a agreement will be announced tomorrow when the house is back in session and the senate is back in session and they can go back to say hey, this is the best opportunity. as far as the likelihood of this kraig, things have not been going well and there's optimism here and there and things are fluid like kristen says and it will be the final deal, but what we do know is these folks on capitol hill are very mindful of the damage that can be done to the economy if nothing is brief. we've had five down days in the stock market and we're preparing the country on tuesday for the first tax increase in 20 years, and i think finally at the end, that's starting to resonate at least with some of the elder members of both sides hence why we're even here on a s

as they can, even if it means going over the fiscal cliff. so if harry reid and mr. mcconnell can't come up with something, then you've got barack obama's proposal. >> joy, even before it gets to the house republicans, there are plenty of republicans in the senate who can mess this up, right? even if mcconnell and reid have a deal, there's no guarantee that there isn't a single tea party-backed senator. >> well, i mean, at the end of the day, look, mitch mcconnell is a much better leader of his caucus. and mcconnell has really controlled the leaders. the fact that he's meeting with harry reid means there probably isn't going to be a filibuster. i'll find that very surprising. the problem is that never have we seen, not in my lifetime, a weaker speaker of the house of representative than john boehner. john boehner has essentially thrown up his hands and walked away from this process. he's walked away from the constitutional mandate that senate and tax bills come from the house, not the senate. and he's said you guys pass something. they were going to pass something. it's the house that's the

:00 a.m. yesterday, senate leader harry reid said he didn't think the fiscal cliff could be avoided. as you can see, stocks plunged. shortly after noon, senator scott brown posted on facebook of all things that he was headed back to washington because the president had reached out to the gop leadership with a proposal. then the markets bounced up a bit. but then cnbc's john harwood tweeted the white house denied skost brown's post and markets dropped again. thanks, john, for that. then came a late day surge on news that speaker boehner called the house back to washington, and late today we learned that the white house is holding a conference call with ceos on the status of the fiscal cliff negotiations. so maybe things will change once more again tomorrow. joining me now to discuss the business ramifications and what the markets think of all this, the editor of thegrio.com and msnbc contributor joy reid. >> hey, richard. >> hi, joy. do we also have fortune magazine's assistant, yes, excellent, managing editor, leigh gallagher. thanks for joining us, too. wall street seems to have be

it does, the senate majority leader harry reid is expected to weigh in, in just about ten minutes on the looming fiscal cliff. reid and his fellow senators are under intense scrutiny after john boehner said the democratic controlled senate must act first on proposals already passed by his chamber. we will bring you reid's remarks as they happen. >>> as the clock ticks down toward the fiscal cliff, washington has a new worry the debt ceiling, treasury secretary tim geithner says the united states will hit its legal borrowing limit on monday. alison kosik is in new york. i feel like it's groundhog day. >> i know it really is. what's old is new again, right, carol? let me kind of back up the bus here. we start talking about the debt ceiling and i know people's eyes glaze over. let me tell you exactly what the debt ceiling is. it's a cap set by congress of the amount of money the federal government can borrow. right now the ceiling is at $16.394 trillion and treasury secretary tim geithner said earlier this week we could hit that debt ceiling on monday, on new year's eve and the treas

saw yesterday senate majority leader harry reid basically accusing john boehner of running a deck tate toreship, that was his word in the house of representatives. reid piled on a little bit late yesterday afternoon and senate republican leader mitch mcconnell responded. take a listen. >> speaker boehner should call members of the house back to washington today. he shouldn't have let them two in fact. they're not here. they're not here. john boehner seeps to care more about keeping his speakership than about keeping the nation on firm financial footing. >> reporter: there have been all eyes on senator mitch mcconnell, the republican leader, the counterpart to harry reid because he has been pretty quiet early on in the negotiations. was defering speaker boehner to give the republican side. after hearing senator reid yesterday, senator mcconnell fired back. take a listen. >> we're coming up against a hard deadline here and i said, this is a conversation we should had months ago. and republicans aren't about to write a blank check for anything senate democrats put forward just because we

anybody is actually doing anything right now. gregg: what about harry reid? what's his, does he have anything at all maybe towards the end of the week he will put on the table? i've been hearing he will put to a vote an extension of the bush tax cuts for anybody making under $250,000 a year, extend unemployment benefits for some 2 million people that are about to lose them. what are you hearing? >> right. he sounded pretty pessimistic this morning but that could change and there's, kind of a fight, procedurally between the house and the senate in a sense that if reid originates a bill in the senate that would do what you said, people in the house say, well that would be unacceptable because the constitution requires revenue bills to originate in the house. but there is this bill that the house did pass a while back extending tax cuts for everybody. the senate could actually amend that bill. it originated in the house and then send it back and actually get somewhere. you have to remember that john boehner actually gave in on the principle of raising tax rates for the highest earners.

probably say where our senate majority leader harry reid and senator mcconnell, the republican leader in the senate, because now all eyes turn to the senate. they're set to come back to town on the 27th. that is thursday. and at this point there are a number of options for some sort of bill that senate majority leader harry reid could put on the floor, but right now it appears democrats in the white house are pushing for something that still concentrates on making sure that income tax rates for those making a quarter million dollars or less don't go up. that said, it's really hard to see how at that rate senator mcconnell might allow some republican senators to support it or that some republican senators would even want to jump on board with that and even harder to see how a bill like that is something that house speaker john boehner would allow to the floor -- allow to the house floor for a vote. so things are very uncertainty point and you're hearing a lot of pessimism as we just heard from democrats and republicans about what will happen with the fiscal cliff and whether we'll go o

're looking to play nice. today, senator harry reid blasted the speaker for refusing to even vote on a democratic plan that would protect 98% of americans. >> everyone knows that if they had brought up the house -- i'm sorry, the senate-passed bill that would give relief to everyone making less than $250,000 a year, it would pass overwhelmingly. it's being operated with a dictatorship of the speaker. >> a dictatorship of the speaker. and here's house speaker boehner office responded. senator reid should talk less and legislate more. legislate more? what legislation has speaker boehner been working on while on vacation? while we're about to go over the cliff, the gop has been pointing fingers at the president. one gop aide says talks have failed because "the president made a strategic miscalculation and overreached. he picked a fight." picked a fight? sorry, that's not going to fly. the president has come to the table with numerous proposals. he isn't picking a fight. he's fighting for the american people. we all want a deal. but we will not give up our core principles. the preside

, and for our entire economy. but the hour for immediate action is here. it is now. >> senate leaders harry reid and mitch mcconnell were back at the capitol in no time. mcconnell gathered his members to inform them of the work that needs to be done. >> we had a good meeting down at the white house. we are engaged in discussions, the majority leader and myself and the white house, in the hopes that we can come forward, as early as sunday, and have a recommendation, that i can make to my conference and the majority leader can make to his conference, so we'll be working hard to try to see if we can get there in the next 24 hours. so i'm hopeful and optimistic. >> i'm going to do everything that i can. i'm confident senator mcconnell will do the same. but everybody, this is -- whatever we come up with is going to be imperfect and some people aren't going to like it. some people will like it less, but that's where we are. and i feel confident that we have an obligation to do the best we can and that was made very clear in the white house. and we're going to do the best we can for the caucuses that w

than expected because of, say, harry reid and mitch mcconnell are able to work something out? >> reporter: i think that that is very likely. you heard president obama sort of signal that he's going to do that when he spoke on friday. he talked about the fact he'll be seeing everyone this week. we get the sense that he is prepared to cut the vacation short. i would not be surprised to see president obama heading back to washington, d.c. at the end of this week. thomas? >> set the sand on the soles as soon as you can. >> reporter: i will. >> merry christmas. thanks. >> reporter: you, too. >>> there are senators on both sides of the aisle saying that the best hope before the new year is a small and temporary deal that will at least buy americans some time. >> i think there's unfortunately only a small deal. i think we'll get past it but we have to get to the big deal. >> we can't let taxes go up on working people in this country. it is going to be a patch because in four days we can't solve everything. >> all right. let's dig in and talk more. joining me is lynn sweet and bob cu

service for the late senator daniel inouye. harry reid is also at that event. will he talk to president obama? white house officials right not being fairly tight-lipped on that matter. not telling us if there are any meetings scheduled at this point in time. they, again, call this a working vacation and say that staffers are working on this behind the scenes. melissa? >> hang on just a second. let me bring in nbc news political editor diminico montenero. what do you think about the majority leader flying all the way to hawaii? >> i think they realized they have three options, small deal, a big deal or go over the cliff, and right now the most likely scenario is a small deal. something that puts us past the fiscal cliff but then brings the fiscal issues into the new year which has a lot of potholes for the president. has a lot of things to get done on his legislative agenda, so worried about how going over the cliff might impact the economy immediately. >> who is more likely to take the blame if we do go over this cliff? >> that's a lot of what we're seeing. that's why you see john boehn

. the president, vice president biden, senate majority leader harry reid and house minority leader nancy pelosi on the democratic side. house speaker john boehner, mitch mcconnell representing the republicans. brianna keilar live from washington. what do we expect to happen today? any new offers from the president or house speaker? >> we don't know. right now, all eyes on the senate to see what senate majority leader harry reid can cobble together to get some republican support. technically, it's still possible to come to an agreement. that said, politically is a different story, and the prospects for coming to a deal are starting to dim. right now, we're hearing a whole lot of the blame game. a lot of public posturing from both sides as they prepare for the possibility of going over the cliff. let's listen to harry reid. >> we are here in washington working while members of the house of representatives are out watching movies and watching their kids play soccer and basketball and doing all kinds of things. they should be here. >> now, the speaker of the house, john boehner, sort of retorting t

and they are scattered throughout the country and taxes are going up on january 1st. let's listen to harry reid. he is not happy about the house and being away. he is the top senate democrat. >> we are here in washington working. we have the house of representatives out watching movies and watching their kids play soccer and basketball and doing all kinds of things. they should be here. >> here's a reality. reid said it's beginning to look to him as though we will plunge over the cliff come tuesday. they are keeping an eye on washington to see what develops. since it looks as though we are headed for higher taxes, i want to bring in terry savage, a personal finance expert for the chicago sun times. terry, let's walk through the higher taxes. we heard little class families are likely to lose $2,000 a year. you break it down this way for single earners making $85,000 a year if their take home pay is $2500 every two weeks. when the higher taxes kick in, they will see their pay go down $120. that's not a little. we are taking a major hit. >> this is big money. almost $400 a month. when you add up a cou

pelosi, john boehner, mitch mcconnell, and harry reid to the white house this afternoon for a fiscal cliff summit. >> here we are five days from the new year, and we might finally start talking. >> today's white house meeting might be the last chance to come to an agreement. that's because it takes time for a bill to work its way through both chamber of commerce. >> i don't know time wise how it can happen now. >> under senate rules, the only way a bill could make its way through the procedural hurdles in time is if every senator agrees not to. they'll have 24 hours. outside the beltway, carlino will be watching. >> everyone is kind of in a wait-and-see and fingers-crossed per expect tichb right now. >> since 1930 this is only the fifth time congress has worked after christmas. and today's summit is the first time president obama has met face to face with congressional leaders since mid-november. duarte, tick tock. >> thank you. >>> general schwarzkopf is being remembered this morning as a great hero and tactician. as teresa garcia the general died yesterday at his home in tampa from

. senate majority leader harry reid, minority leader mitch mcconnell will have to work together. a lot of focus shifts to mcdonnell. he has to try to get something that will pass with republicans that they can get through the house and senate, but i think president obama certainly has a role to play. remember, he is the one who ran on the platform. >>> you heard him map out on friday. he would like a scaled-back version of the grand bargain, something to prevent taxes going up, and also lay the groundwork potentially for deficit reduction in the future. i think you will see president obama cut his vacation short, and continue to play a role in those negotiations. richard. >>> kristin, over the weekend, he attended the funeral for the late senator inouye, who he has called an inspiration to him. what did you see in that service? >> well, more than 20 members of congress attended, mostly democrats, majority leader harry reid spoke and praised senator inouye for his partisan spirit, reaching across the aisle. of course in an earlier memorial service, the president called the late senator

and harry reid. republicans mitch mcconnell and john boehner. those four members of congress are expected to make the drive from the capital, which you see on the right, down pennsylvania avenue, to the white house, there on the left. and we expect them to enter through a side door on the west side of the mansion. that's the entrance right there. and they'll meet with the president. in the oval office. beginning, we're told, at 3:00 p.m., less than one hour from now. and just four days ahead of the so-called fiscal cliff. so a very big moment in the nation's capital. and to walk us through what might happen we turn to jessica yellin, a chief white house correspondent. jessica, we said up front, it is a long shot, give us a best case scenario. >> reporter: the best case scenario would be that all the leaders walk out of this meeting and say they have a deal. the two senators say they can bring it to a vote, and none of their members will filibuster it. house speaker john boehner says he will bring it to the house floor for a vote before new year's eve and house minority leader nancy pelosi

from its christmas vacation to work on a deal today. sources tell us majority leader harry reid will be pushing a scaled back version of the fiscal cliff package that president obama laid out last week. it moved the tax hike needle to $400,000 per household. no word yet on when the house might come back with time ticking away. democrats are hoping that a scaled back plan could get through the house, senate and white house before that big ball drops on 2013. that would be sometime on december 30th or even on new years eve. we want to bring in jonathan allen. he's a senior national correspondent for politico. the top headline on politico is fiscal cliff deal increasingly unlikely. i think a lot of people are feeling that pessimism right now. what are you hearing? >> well, i think what you've got here, alena, is a nash equilibrium to borrow from economic theory and game theory. each of the players believe they are pursuing their optimal strategies given the strategies of the other players and there's no reason to change it. i think as observers of this, the american public, you can

to president obama and harry reid to come one their plan and send us something and then we'll work on it. host: why did the plan b fail guest: in short because it involved tax rate increases and in effect would have led to tax rate increases. boehner args the vote itself was to extend tax cuts that there's nothing in the bill, nobody was actually voting for tax rate increases but the effect is it would have been a tax rate increase and enough conservative republicans in the house said i made a pledge not to raise taxes and this is a tax increase because by not doing anything the voters will see the tax increase so enough to have them said we won't go with you that he knew he simply wouldn't have support. it was dozens and so he was not going to get any democratic support for it, so he had toful bill. -- so he had to pull the bill. host: and talk about arm-twisting. is it these people came to him and said there's no way we're going to vote for it or did he do a head count and just say, i won't have enough votes to pass my bill? guest: a little bit of both. i was outside while they were huddling

the cliff. that's where senate majority leader harry reid says we're headed. can washington save us with just five days to go? >>> plus, a proposal to give guns to school principals is gaining support. we're "outfront" with an arizona sheriff who's backing that plan. >>> and the 2012 election was all about viral videos, tonight we're counting down our favorite political video of the year. let's go "outfront." >>> i'm john avalon in for erin burnett. "outfront" tonight, a stark warning from capitol hill. senate majority leader harry reid says we're all headed for fiscal disaster. >> if we go over the cliff, and it looks like that's where we're headed, mr. president, the house of representatives, as we speak, with four days left before the first of the year, aren't here. >> we're now told the house will finally return to work on sunday. now, that's december 30th. in other words, less than 48 hours before we go over the fiscal cliff. meanwhile, president obama cut his hawaii vacation short to return to washington today. but has he been working on a deal? "outfront" tonight, reports fro

sent a letter to the honorable harry reid majority leader. and that's where he outline it is fact that in three business days, the summit government is going to run out of borrowing capacity. john, if there were a treasurer in a business who went to their boss and said by the way, three business days, the working capital account dies and as a result, you are not going to make payroll next week, that person would be fired. we get three days notice about hitting the debt ceiling? that seems absurd to me. >> it is not a surprise.rise we have known we were coming to this point and there are two months more -- geithner estimated in that letter that the ways in which the federal government can manage money will give about would months worth of head room, possibly even longer. february or march or -- where we really get to the -- rubber hits the road on that issue. so -- this is not a shock to anybody in government but the publication of this letter and the elevation of the issues in attempt was done in 2011. there was an early moatfication by treasury this was about to happen, trying to

. >> clayton: they all said the same thing. presidential meeting with the leaders yesterday. harry reid. >> juliet: vice president showed up. >> clayton: they must have been all on the same table hey whether we lee this table we will say modestly optimistic. listen to senator mitch mcconnell who may be the linchpin of this whole thing. he said i will take the ball and run with it in the senate. get a deal done. listen to the senator. >> we had a good meeting at the white house. we are engaged in discussions the majority leader and myself and the white house in the hopes that we can come forward sunday and have a recommendation that i can make to my conference and the majority leader can make to his conference. we will be working hard to see if we can get there in the next 24 hours. so i'm hopeful and optimistic. >> charles krauthammer calling him a master negotiator. saying if it were left up to him he could solve the syrian civil war in a weekend. >> dave: he can get it done but there is still john boehner and the house republicans. i'm not modestly optimistic. anything through the hou

and will not be done with a partisan vote. >> holman: senate majority leader harry reid agreed with that assessment, but he suggested there's a way to recover. >> now, i like john boehner, but gee whiz, this is pretty big political battering he's taken. what he should do is allow a vote in the house of representatives on a bipartisan bill. it will pass. >> holman: the president met this afternoon with reid and spoke with boehner, then came to the white house briefing room. >> in the next few days work towards a package that avoids tax hike on mid class, >> and lays the groundwork for further work on both growth and deficit reduction. that's an achievable goal. that can get done in ten days. >> bayne never >> holman: in his appearance earlier, boehner, flanked by majority leader eric cantor, sounded doubtful, but said he's willing to try. >> how we get there, god only knows. all i'm telling you is that eric and i, and our team here are committed to working with our colleagues on both sides of the aisle, both sides of the capitol, and the white house to address that. >> holman: still, as the capitol

. >> thank you, luke. >> so we know now the ball is in the senate's court, emphasis is now on harry reid and mitch mcconnell. seems the house is not in session. johnny isakson, your colleague from georgia said congress should pass the $250,000 and below deal because that's what's going to happen afterwards. do you think that should happen? >> i do not. i think $250,000 is too low a threshold. a lot of working people who are couples would exceed that. however, i talked to some of my democratic colleagues and they are saying maybe in the $400,000 or $500,000 category we could set a benchmark. i do think it is essential that we start talking about what amount can be passed on a bipartisan basis, because, you know, i'm one who believes you shouldn't tax anyone right now. i would have supported plan b. i think that we've got to come to some terms with the impact that this is going to have and remember the other parts of this, making the child tax credit permanent, the marriage penalty relief permanent. these are things that go with any kind of a threshold that we hopefully could agree on. >>

majority leader harry reid and spoke with house speaker john bainer and addressed the nation on the topic of avoiding the fiscal cliff. called on lawmakers to compromi compromise, to get a deal done. he acknowledged time has run out for getting a larger package. what they need to focus on now is getting a smaller deal that will avoid taxes from going up on middle class americans. meanwhile, a very rough friday for house speaker john boehner, really spent most of the day, explaining what has been views as a political blow, when on thursday, many republicans refused to back his plan b. that is speaker boehner's alternative plan for avoiding the fiscal cliff and called for allowing rates to go up on those making $1 million or more. here is a little more of what house speaker john boehner and president obama had to say on friday. take a listen. >> we have a number of our members who didn't want to be perceived as having raised taxes. >> i expect democrats and republicans to get back to washington and have it pass both chambers. and i had immediately sign that legislation into law, before janu

on a deal. now, sources tell us majority leader harry reid will push a scaled-back version of the fiscal cliff package that president obama laid out on friday, which moved the tax hike needle to $400,000. no word yet on when the house of representatives might come back, but democrats say the only hope we have of something getting through the house, the senate and the white house may be a very last-minute deal. cnn radio's lisa is following developments on capitol hill right now. the ball is in senate majority leader harry reid's court it would seem right now, lisa. >> that's right. harry reid and the senate seem to be the only game in town right now with the senate returning today. we also know from sources, ali, that over this christmas break there were no conversations between the president and top-level republicans. sources from both parties are telling us they are watching the senate, especially the democratic leadership in the senate. we also know yesterday house republicans came out with a statement saying that he will act only after the u.s. senate acts. we're not sure what the se

john boehner. he met in person with harry reid, although what the private happened, we don't know. but publicly things sound a lot like they have for the past few weeks. take a listen. >> every member of congress believes that, every democrat, every republican. so there is absolutely no rea n reason, none, not to protect these americans from a tax hike. at the very least, let's agree right now what we already agree on. let's get that done. >> what the president has offered so far simply won't do anything to solve our spending problem and begin to address our nation's crippling debt. instead, he wants more spending, more tax hikes that will hurt our economy. >> bottom line, right now we're hearing a lot less talk about some sort of a grand bargain. and instead, maybe some stopgap measures to give some certainty to americans before that end of the year deadline. randi? >> and is it just the taxes that's holding out the agreement or something more at this point? >> it's hard to know exactly. it seems like the biggest sticking point that we are hearing discussed publicly remains thos

the fiscal cliff, which is a sure sign that the senate majority leader, harry reid, a democrat, is working on crafting legislation on his own that he would essentially dare house and senate republicans to oppose. his legislation would likely extend the bush-era tax cuts for households making less than 250,000 a year. it might also include enough short-term spending cuts to temporarily offset for, say, six or eight months, the indiscriminate across-the-board spending cuts that are set to go into effect on january 1. yis bill would also try to tie up some year-end loose ends by extending long-term unemployment benefits, patching the alternative minimum tax that duds up hitting so many middle class families, and preventing a mbg scheduled drop-off in thdicare reimbursement rates for doctors at the start of the enar. eyre in hawaii, the president has had a low-key christmas with family and friends, but he will omoreaving this state as early as tomorrow to head back to grshington d.c. to put pressure on congress to pass that democratic plan. jim? >> any indications, nancy, where thewhether the

met with harry reid at the white house and spoke with house speaker john boehner. mr. obama said lawmakers need a break from fiscal cliff frustration-- much of it self- induced. >> we move forward together or we don't move forward at all so as we leave town for a few days to be with our families for the holidays, i hope it gives everybody some perspective. >> reporter: the president will follow his own advice. lawmakers and return to washington if there is a deal. >> pelley: major, thank you. as you know, this debate is all about bringing the federal budget under control. if the white house and congress can't figure it out, big across- the-board budget cuts and those tax increases we mentioned kick in automatically january 1. the so-called fiscal cliff. the republican speaker of the house tried to force through his solution last night but he couldn't keep his own party in line. nancy cordes is at the capitol. nancy? >> reporter: scott, this was an unforced error. speaker boehner did not have to bring this plan "b" bill up but he was simply trying to get more leverage in negotiati

in hawaii. to beat the january 1st deadline senate majority leader harry reid is said to be crafting his own fiscal package. it would extend the bush era tax cuts for households making less than $250,000, extend long-term unemployment, short-term spending cuts, and make a scheduled drop in medicare reimbursement to doctors. house speaker john boehner said they've had no communication with senator reid. >>> the exconwho ambushed and killed two volunteer firefighters in upstate new york may have murdered his sister. her body was found yesterday, and police say william spamglor had the same kind of military rifle used in the connecticut school massacre. he left behind a chilling note. >> reporter: the christmas eve fire in western new york burned seven homes to the ground, but police say william spangler wanted to do much worse. he planned to burn down the entire neighborhood and "do what i like doing best, killing people." the 62-year-old shot at firefighters from a nearby bank. he killed two of them before taking his own life. police found his note and three guns, including a bushmaster rifle

leader harry reid and the rest of the senate to find a passable solution. aides say reid's plan would avoid tax increases for people making less than $250,000, eliminate some big spending cuts and restore unemployment benefits. >> i think you're likely to see a two-step process here, one sort of dealing with the immediate dynamics so that you could in fact set up a situation where you could deal with the larger situation. >> reporter: without a deal, bush-era tax cuts will expire january 1st and deep spending cuts will set in. congress set up the deadline, hoping it would force a compromise. so far, that's backfired. also flying back on air force one is lieutenant governor brian schatz and will likely be sworn in later today. just before taking off, he tweeted that he's looking forward to supporting the president's agenda. reporting live in washington, i'm dan yeielle leigh. mara, back to you. >> thank you. >>> tim geithner is adding to the pressure to get the office calf cliff deal done. in an open letter wednesday, he warned the federal government may not be able to pay its bills on

. >> harry reid is blaming house speaker john boehner for the stalemate and predicts new deal will happen before the end of the year. house republicans have rejected any compromise where the wealthiest americans no longer get a tax cut. others are still optimistic. >> these deals come together at the last minute. to paraphrase ronald reagan, there has got to be a pony here someplace. >> i would urge the speaker of the house to call is back in session, to do what america expects us to do -- address the challenges, find solutions. >> americans have a lot to lose without a deal. taxes would jump an average of $2,400 for families making between $50,000 and $70,000 a year. the congressional budget office predicts the nation could lose jobs. house members will be coming back to washington on sunday to try to get a deal done by midnight on monday. wbal tv-11ews. >> now that the ravens are officially champions of the afc north division, retailers are trying to cash in on the success. >> yes, there are a lot of things out there. we caught up with one screen printer in colombia. they came up with a

sources close to the talks say senate leaders harry reid and mitch mcconnell are drafting a small plan that could include extending unemployment insurance benefits pro-tkting about 30 million americans from paying the alternative minimum tax and allowing tax rates to increase on the wealthiest americans, but this issue remains a major sticking point with many republicans resisting any tax increase at all. economists say the last-minute process calls into question washington's ability to deal with the hard issues of tax reform and deficit reduction. >> the prospects for the economy are incredibly dim until we put in place a bigger deal, tackle these challenges, and put some certainty into the economy and boost confidence. >> reporter: meanwhile, americans watched with worry and frustration. >> i think they're all failing us a great deal and i'm so sick and tired of them fighting. >> the equivalent of worried about your mortgage after you're already homeless. so it's, like i said, sad. they have a job to do and they're not doing it. >> reporter: now, with public pressure mounting, the ho

on firm financial footing. >> harris: a spokesman for john boehner fired back "senator reid should talk less and legislate more." and senate minority leader mcconnell saying we should have worked all this out months ago. >> and republicans aren't about to write a blank check or anything senate democrats put forward just because we find ourselves at the edge of the cliff. >> harris: tonight, that is exactly where we stand. at the edge of a cliff throwing blame for how you we got here. a lot of finger pointing and no answers as i said and just days remaining until tax increases and spending cuts all kick in and we all feel the pain. mike emanuel live with the news for us tonight on capitol hill. top democrats seem to be suggesting they cannot cut a deal without republican help. >> well, harris, that is right. and so they are asking what it will take to at least get some republican support. they say time is so critical. they cannot just roll out new legislation only to have the republicans reject it. we know president obama called the top four congressional leaders last night on his way b

back to washington from hawaii here. senate minority leader harry reid has the task of trying to conjure up something that might be able to pass the house in addition to the senate publicly. the white house is saying they want tax rates to remain in effect for those making up to $250,000 per year, but it's unclear if that's something. very unclear, very unquestioned that house republicans could swallow that. we're hearing aing you significant possibility we go over the fiscal cliff. >> absolutely. both sides are saying that. you play thad sound bite from john baroso, saying it's politically expedestrianent for the president to go off the fiscal cliff. but both sides are saying, you know what? maybe it's better to go off the cliff. politically, members of congress will have to vet on tax cuts as opposed to now which are tax increases which are much harder to take. >> that's right. because the tax hikes will happen whether or not congress acts, so the school of thought here is that if republicans and temp kratz were to allow this just to happen, then they could vote for infect o

. >>> harry reid is asking for an announce mint on who his successor will be before the end of the year. >>> governor mark sanford may run for his former seat in congress. he was considered a rising gop star until he van niched from south carolina for five days back in 2009. he said he was hiking the appalachian trail. he later acknowledged he was visiting his miss stress in argentina. he served three terms before being elected to governor. his ex-wife is also interested in running for the seat >>> a fight between two black jack dealers hands one in the hospital and one behind bars. police say the fight happened between two female dealers and one woman stabbed the other in the face. police aren't sure what sparked the fight. it comes one week after a deadly shooting in the lobby of the excalibur hotel >>> a 20 day venetian cruise is not owe relaxing after they and the crew members got sick. it was carrying 2100 passengers. it left from venice and had to dock early in galveston after the people fell ill to the deadly norovirus. >> it was code red for 10 days. >> it wasser terrible. i --

from where former senator bob dole was also wounded and senate majority leader harry reid was here hawaii today eulogizing senator inouye, talking about how emotional he got as he saw the senator's casket in the rotunda. >> he wasn't satisfied just to be there, he wanted up on that platform so he could reach his friend of 60 years, dan inouye. he got up there, with a little struggle, but he got up there and soldier to soldier, with his left hand, he saluted his soldier friend of 60 years. >> reporter: now, i want to make clear that senator inouye, i said he was award theed medal of honor. he earned it, he's a recipient. not something he won in a contest. and they heard me say that or told i said that. i want to clarify that senator inouye, all three of men received the honor, great, great honor, harris. >> harris: you've cleared it up for us, ed henry. now we'll see the flip side of this and talk about what's going on here in the mainland. the president is on vacation obviously, but is he doing other work that might bring him back to bring us back from the fiscal cliff? might we s

not support it president obama says he just told speaker boehner and senate majority leader harry reid exactly what to do, and he says they can get it done. before automatic spending cuts and tax hikes kick in on new year's day. ed henry live at the white house. ed? so what's the president's new plan? >> well, harris, the president said he came into the briefing room and said maybe is he a hopeless optimist but is he a new slim down three point plan that he says can pass in 10 days. basically extend tax cuts for 98% of americans. he said both parties agree with that extend unemployment benefits for 2 million americans. those are expiring about a week after christmas. that's a big problem. and then he says come back and do spending cuts and deficit reduction in the new year. he is telling lawmakers take a few days off. relax over the holidays and maybe we'll all come together. take a listen. >> sing some christmas carols, enjoy the company of loved ones. and then i would ask every member of congress while they are back home to think about that think about the obligations we have to the people w

democrats in the house or in from harry reid, or the president. it turned out he couldn't deliver first. it's up to the president now. the president has the come back. put his proposal on the table. i assume the senate controlled by the democrats could pass it. then the house republicans, fair to say to speaker boehner and house republicans you will let us go over the cliff or swallow and accept something you don't like much. i think the ball is in the president's court. >> doug: juan, others are saying that the ball is in the senate hands right now. >> the scenario most likely is speaker boehner abandoned by the troops. no investment of confidence in him or his negotiating skillnous you look at president obama and the senate. republicans in the senate who are open to some kind of deal with president obama and the democrats in the senate. if you have ten-plus republicans, willing to sign on to some kind of deal, that puts pressure on the house. it might create an opening for speaker boehner. although it might endanger his re-election to the speakership on january 3. >> doug: the 21st of thi

go up. but cnn is told that senate democratic leader harry reid is privately warning colleagues if he's not sure the president's scaled back bill will pass both houses of congress, he won't even bring it up for a vote. the concern sources say is that a failed vote and going off the fiscal cliff would spook the markets even more. sources in both parties say the most likely scenario at this point is going off the fiscal cliff. why? after january 1st, when everyone's taxes go up, the new congress sworn this on january 3rd could vote to cut taxes. a much easier vote to cast for republicans as well as some democrats. as for the president, is he nhe scheduled to leave his family tonight, come back to washington tomorrow morning, in the hopes of helping his fellow democrats try to find enough republicans to pass his plan. but of course this goes without saying that was a plan that most if not all republicans campaigned very strongly against. >> the most likely scenario is actually did go off the cliff now. ryan liza is our correspondent from washington. you look at this and we're hearing ech

this time around the idea that the president and harry reid in the senate don't have enormous power to get a deal done or stay here. don't go away for the holidays. maybe go to camp david like push did only 8 times and actually get the job done for the american people it's convenient to say it's the tea party fault i am not here to scapegoat then. americans though we have three branches of government. nothing can get passed unless the senate and house both pass bills, right? a tea party is a part of the equation. they do not have the amount of influence that they had before. but they are certainly are necessary to come to some sort of deal here if we're going to get anything done before january 1. i think the bottom line is this: we do not have a short-term deficit crisis. i agree with katrina on that point. we have a revenue problem. and a growth problem. we have millions of americans out of work. that. >> laura: zerlina, you have to be better at math than that. >> i'm very good at math, actually. >> laura: 90% tax rate on the upper income level on the united states is a drop in the buck

pass that when we know harry reid will kill it in the senate or obama will veto it? why go out on a limb and abandon the idea republicans never allow a tax hike for something just going to be an attempt at a strategic thing, and the reason they thought it would fail is it would involve trying to blame obama if we went over the fiscal cliff and republicans don't think the media would accept that narrative. i don't know. you would know better than i would about how the media would react to that. that was a feeling on the republicans part they couldn't successfully pin obama with going over the cliff. >> i never speak for the media. i speak only for myself. i don't know. it is going to really depend, don't you think? matt, you have a column back in december that said john boehner cat herder and i was thinking the cats got the better of the speaker. what do you think that means for his future? does he remain as speaker? does someone else come in and take over because it is an indication he can't control his own group? >> well, it certainly wasn't a vote of confidence. i think, john

in the senate, and senator majority leader harry reid in hawaii for the funeral of daniel inouye and is now back to washington. it could come down to the senate doing something. senator mcconnell might allow this bill i mentioned that i already passed in july, was a threshold for tax hikes, being at the $250,000 level, he may allow democrats to say, the house has to take this, or if there is some sort of vote on another measure, while mitch mcconnell would be unlikely to support it, perhaps he might let some of his republican senators do that, now, this is sort of thinking, coming from democrats, this is not something that mitch mcconnell at this point is planning to do, and it's very much unclear. the fact is, it doesn't just matter what the senate does, don, the house would have to pass something. and whatever were to come out of the senate at this point would require not just republican support, they made that clear last week when they didn't support speaker boehner's plan b. it would come down to speaker boehner deciding whether or not he would allow some sort of measure to go to the floor.

will reckoconvene thursday. harry reid has the task of trying to cobble something together that can get some republican support in the senate and also get some republican support in the house and make it through congress. that's a difficult task. the white house saying they want the threshold for income tax rates expiring to be $250,000 and above. they are back to their initial negotiating position. and so between that and the lack of discussions going on, you sort of understand why you're hearing from democrats and republicans this pessimism about going over the fiscal cliff. privately, that's all what we're hearing that it is a real possibility to go over the cliff, even though there's a possibility of still working out a deal. but this is a last-ditch effort for sure. >> it's incredible that privately they are also saying that. everyone thought once we get closer to the deadline, they are going to get it together, come up with some sort of deal. if this stopgap measure does actually pass before january 1st, is the president prepared to go back to d.c. and cut his vacation short? >> report

leader harry reid is here, eulogized senator inouye and senator daniel acaca. it is fascinating, president obama is at thor is is mony watching this happen, just a reminder of just how long serving representing hawaii daniel inouye did, he represented hawaii from 1959, from before president obama was even born. he has been a main stay here in hawaiian politics and? a very significant moment for this state. >> also amazing that this guy served in world war two while members of his family were interred back in the u.s. an absolute hero. brianna, thank you very much. >>> no matter how the fiscal cliff negotiations play out, the wealthy will probably see their taxes go up, but congress can't seem to agree on hot wealthy is or are. even if they figure that out, there's also disagreement about how their taxes should go up. cnn's lisa sylvester sat down with a megamillionaire who says he is ready to take a hit and you so should the rest of the 1%. >> reporter: the question who is considered rich? house speaker john boehner pushed for tax hikes for those making $1 million or more. presi

and the agreement is going down. i mean, for example, senate majority leader harry reid is name calling and calling john boehner a dictator . this is what he had to say. >> the american people i don't think the house representative is operating without the house of representative. it is being operated with a dictatorship of the speaker not allowing the vast majority of the house and representatives to get what they want. >> that sounds ridiculous f. it was a dictatorship boehner would have gotten that vote and he couldn' get the vote. what we should do honestly guys, is swan dive ov the fiscal cliff. let president obama own the fiscal cliff. it should be called the obama cliff. >> julia: people know how much they would have to pay. folks on the man on the street interviews . people are looking at the numbers going what. >> kelly: in today's meeting should be a crucial meet the white house should have come with its plan and boehner should have come with a plan and senator reid should come with a plan but senator reid is name call speaker of the house john boehner giving retaliation of what is done .

and it was no surprise that harry reid was meeting yesterday, it would be a short-term fix to prevent the fiscal cliff. the other is the grand bargain, and time is running out, it's unlikely you will get something like that, however, there's a chance that john boehner and republicans say, mr. president, the last offer that you had on the table, we agree to. and the third option is going over the fiscal cliff and as my colleague has pointed out time and time again, that seems to be the more likely option for everyone, because you end up going over and then that would allow republicans to countenance cutting taxes the way that president wants to do and that seems to be the direction we will be going. >> that third option, juftd going over the cliff, what are you hearing from the white house? is there a sense of confidence that if that were to happen that they would rebound better than republicans? >> reporter: well there's a sense in part, if you look at the polls, the majority of americans say they would blame republicans if the country were to go over the fiscal cliff. the white house feels they are i

. and a lot of democrats, including the democratic majority leader in the senator, harry reid will support frank laudenburg. >> thank you for sticking around. >> thanks, richard. >> you bet. president obama is in hawaii, members of congress are moment for the holidays. any chance they get a fiscal cliff deal done before the end of the year and then, one congressman who said this week, he is willing to lose his seat to support stricter gun control, he is going to join us after the break. copd makes it hard to breathe, but with advair, i'm breathing better. so now i can be in the scene. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator working together to help improve your lung function all day. advair won't replace fast-acting inhalers for sudden symptoms and should not be used more than twice a day. people with copd taking advair may have a higher chance of pneumonia. advair may increase your risk of osteoporosis and some eye problems. tell your doctor if you have

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